Sri Lanka shares end 1 pct higher; foreign buying seen

The Colombo stock index ended up 1.09 percent at
6,309.04, its highest close since Nov. 18.

The index hit a near-eight-month low on Tuesday on concerns
that the proposed hike in various taxes and fees would reduce
disposable income and challenge consumption-led growth.

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Foreign investors bought a net 45.4 million rupees
($306,860.43) worth of shares on Thursday, but have been net
sellers of 1.59 billion rupees worth of shares so far this year.

Turnover stood at 1.18 billion rupees, more than this year's
daily average of 696.8 million rupees.

"Market is very bullish with continued foreign buying," said
Dimantha Mathew, head of research at First Capital Equities
(Pvt) Ltd.

"Early morning buying in John Keells boosted confidence
levels and brought the buying in to the market. Excess liquidity
in the banking system is also helping the market."

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The government aims to boost its 2017 tax revenue by 27
percent to 1.82 trillion rupees year-on-year and meet a
commitment given to the International Monetary Fund in return
for a $1.5 billion loan in May.

The market shrugged off the central bank's monetary policy
decision on Tuesday to keep rates unchanged. Brokers said
investors are concerned about sustainability of rates.